Accounting for IGCSE & O level - The Fundamentals Of Accounting (Section 20 - No. 31)
What is the correct journal entry for the sale of an office chair for $100, which had a written-down value of $100?
Debit Cash $100; Credit Furniture $100.
Debit Cash $100; Credit Profit and Loss $100
Debit Furniture $100; Credit Cash $100
Debit Profit and Loss $100; Credit Cash $100
Explanation
The correct journal entry is Debit Cash $100; Credit Furniture $100. It's essentially a sale of asset. Cash is received, and the asset (furniture) is reduced.
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